Credit Rating agencies may be prosecuted under EU draft
Rating AAA, good friends make it possible, banks traded internal securities, futures, bank guarantees, or simply "fancy stuff" like Bush said, with virtual no control. The fancy comfort rating system causing the sub-prime crises will be banned from Europe. Worthless home loans have been added to the package to make a security balance. Debts to sell, amazing sell your dept, get new credit , speculate with expensive money you not own, call it private equity, buy Chrysler, try to sell assets, not working, name yourself cerberus, the dog of hell.
BRUSSELS, July 31 (Reuters) - Credit rating agencies which breach strict new European Union rules aimed at making them more accountable could be banned or prosecuted under a draft law published by the EU's executive on Thursday.
Standard & Poor's (MHP.N: Quote, Profile, Research, Stock Buzz), Fitch (LBCP.PA: Quote, Profile, Research, Stock Buzz) and Moody's (MCO.N: Quote, Profile, Research, Stock Buzz) are under the regulatory gun on both sides of the Atlantic and already face lawsuits in the United States.
They are widely blamed for being slow to warn investors about risks in securitised products they rated.
Despite high ratings, the products became untradable when U.S. home loans underpinning them went upaid, forcing banks holding them on their books to suffer massive writedowns.